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Technology Stocks : Full Disclosure Trading

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To: Jacob Snyder who wrote (163)4/12/2002 1:02:52 PM
From: kdavy  Read Replies (1) of 13403
 
JDSU buy/sell plan: If you plan to buy in steps when the stock is going down the a better plan is to sell Jan 2003 5 puts ($ 1.35 now). And as stock keeps going down keep selling jan 5puts. Worst case: stock goes to zero, you have to buy stock at 5.00 (your cost 5.00-1.35=3.65). A better case then buying stocks. Best case stock goes up you are left holding the premium, I won't argue with $1.35 of free money (may be more if stocks dips a little before it goes up). Comments on this approach??

kdavy
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